From 1st of July 2017, First Home Buyers won’t pay stamp duty on new or existing properties worth up to $650,000 under reforms announced by Premier Gladys Berejiklian on Thursday. At present, stamp duty relief only applies to brand new homes that have never been lived in or is constructed within 12 months of purchase.
First homebuyers will also receive stamp duty discounts on homes worth up to $800,000, while stamp duty on lenders’ mortgage insurance will also be abolished altogether.
On the other hand, the foreign investor stamp duty surcharge in New South Wales will rise to 8 percent from 4 percent, effective July 1, Premier Gladys Berejiklian said in a statement Thursday. The surcharge is in addition to normal New South Wales stamp duty, which can be as high as 7 percent for the most expensive properties.
Additionally, the annual land tax on foreign homeowners will rise to 2 percent from 0.75 percent. Stamp duty concessions for investors purchasing off-the-plan properties, popular with foreign buyers, will be abolished.The crackdown on foreign investors is part of a wider package aimed at boosting housing affordability in Australia’s most-populous state.
With median property price in Sydney reaching $1.5 million, it would be interesting to see how much of a help would these concessions bring to first home buyers.